Has Your Life Insurance Company Sent You A Check? – If Your Life Insurance Company Sent You Back All the Premiums You Paid, Think TWICE Before You Accept that Money.
Some of our clients make their first call to us when they receive what they find the strangest thing: their life insurance company has sent them a check, but not for the amount of the life insurance benefits. Instead, the life insurance company has sent them back the amount of all the premiums that their loved one paid for the life insurance policy. This is very surpsing, and confusing. How did hte life insurance company pick this amount to pay? Will the rest of the policy benefits ever arrive? (Answer: No, unless you hire us to change the situation.) But why did the insurance company do this?
If you receive a check from your life insurance company for the amount of the premiums paid, but not for the policy benefits, watch out. Read and understand the letter that the insurance company has sent along with the check. The insurance company has its own plan here–and it isn’t going to help you. The life insurance company seeks to make the policy just disappear. In the language of life insurance companies and the law, they seek to rescind the policy. What does rescind mean? Rescind, and rescission mean the same thing. To undo the life insurance policy, to go back to the time before the policy was in place. Instead of living up to their part of the contract, to pay the life insurance benefits when your loved one has passed away, instead, the insurance company doesn’t even want to have a contract with you.
Rescission and rescind means that the insurance company seeks to vaporize the contract. To make it official and binding, the life insurance company usually sends back the money paid in premiums. (Yes, it can get worse, there are some companies that argue rescission, but then don’t even want to pay back the premiums. Instead, they want to keep the premiums as a set-off for their own legal fees. But that is another comment.) As the final step of the life insurance company’s plan to make the life insurance disappear, they send back the premiums. Because life insurance companies usually try to do rescission (rescind) and return the premiums to you. The rescission takes place in the first two years of the policy, so there is less than two years of premiums involved. For the life insurance company, this is a easy decision to make. They would love for you to accept the check, accept their rescission, and have that be the end of it. For the life insurance company, its just money.
Don’t cash the rescission check. Just don’t. Keep your eye on the point of justice. We can make that life insurance company comply with the law, and the policy premium is much more than the amount of premiums they want to return, and call it over.
If you have cashed the check, don’t give up. We may still be able to help you, but the cashing of the check is a fact that the life insurance company will argue again and again, to distract from the real merits of the case. So, as general advice, call us or write us or chat with us. Don’t cash the check, but if you have, don’t give up all hope.
Don’t accept a rescission of your loved one’s life insurance policy. When the life insurance company sends you back the money paid as premium, you know they will be a difficult opponent. Contact us, at LifeInsuranceLawyerNOW.com , by chat, by the form on our site, by email, by phone call to (888) 997-4070, or direct at (818) 937-0937.
Talk to an actual, experienced life insurance lawyer NOW, for a free consultation, and answers to your questions, starting NOW. We usually work on a flat fee or contingency basis, with the best rates available. On a contingency, you don’t owe anything as fees unless there is a recovery, and the fees are paid from that recovery. We are here to help.